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Transfers and Servicing of Financial Assets (Including Mortgage Banking Activity)
 12 Months Ended
Dec. 31, 2019
Transfers and Servicing [Abstract]  
Transfers and Servicing of Financial Assets (Including Mortgage Banking Activity) TRANSFERS AND SERVICING OF FINANCIAL ASSETS (INCLUDING MORTGAGE BANKING ACTIVITY)
Commercial Banking Activity
The unpaid principal balances of loans serviced for others were $2.4 billion and $1.6 billion at December 31, 2019 and 2018, respectively. Custodial escrow balances maintained in connection with the foregoing portfolio of loans serviced for others, which are included in demand deposits, were not significant at December 31, 2019 and 2018.
Mortgage Banking Activity
IBERIABANK through one of its reportable segments, Mortgage, originates mortgage loans for sale into the secondary market. The loans originated for sale primarily consist of residential first mortgages that conform to standards established by the GSEs, but can also consist of junior lien loans secured by residential property. These loans are primarily sold to private companies that are unaffiliated with the GSEs on a servicing-released basis. Changes to the carrying amount of mortgage loans held for sale at December 31 are presented in the following table.
(in thousands)
2019
 
2018
 
2017
Balance at beginning of period
$
107,734

 
$
134,916

 
$
157,041

Originations and purchases
1,967,532

 
1,469,847

 
1,844,358

Sales, net of gains
(1,869,148
)
 
(1,498,386
)
 
(1,859,565
)
Mortgage loans transferred from (transferred to) held for investment
7,239

 
1,058

 
(6,918
)
Other
—

 
299

 
—

Balance at end of period
$
213,357

 
$
107,734

 
$
134,916


The following table details the components of mortgage income for the years ended December 31:
(in thousands)
2019
 
2018
 
2017

 
 
 
 
 
Mortgage loans held for sale and derivatives
$
2,752

 
$
6,490

 
$
(7,047
)
Derivative settlements, net
(8,481
)
 
(4,039
)
 
1,229

Gains on sales
68,110

 
42,887

 
68,255

Servicing and other income, net
1,392

 
1,339

 
1,133

Other losses
(743
)
 
(253
)
 
—

 
$
63,030

 
$
46,424

 
$
63,570


Mortgage Servicing Rights
Mortgage servicing rights are recorded at the lower of cost or market value in other intangible assets on the Company's consolidated balance sheets and amortized over the remaining servicing life of the loans, with consideration given to prepayment assumptions. Mortgage servicing rights had the following carrying values as of the periods indicated:
 
December 31, 2019
 
December 31, 2018
 
Gross Carrying 
Amount
 
Valuation Allowance
 
Accumulated
Amortization
 
Net Carrying 
Amount
 
Gross Carrying 
Amount
 
Valuation Allowance
 
Accumulated
Amortization
 
Net Carrying 
Amount
(in thousands)
 
 
 
 
 
 
 
Mortgage servicing rights
$
22,476

 
$
(250
)
 
$
(6,621
)
 
$
15,605

 
$
13,612

 
$
—

 
$
(4,806
)
 
$
8,806



In addition, there was an insignificant amount of non-mortgage servicing rights related to SBA loans as of December 31, 2019 and 2018.